Earnings and Growth Analysis : Canadian Pacific Railway (NYSE:CP)

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Earnings results for Canadian Pacific Railway (NYSE:CP)

Canadian Pacific Railway Limited is expected* to report earnings on 10/20/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $3.2. The reported EPS for the same quarter last year was $3.48.

Canadian Pacific Railway last announced its quarterly earnings results on July 22nd, 2020. The transportation company reported $4.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.75 by $1.32. The company had revenue of $1.79 billion for the quarter, compared to the consensus estimate of $1.78 billion. Its revenue was down 9.5% compared to the same quarter last year. Canadian Pacific Railway has generated $12.39 earnings per share over the last year and currently has a price-to-earnings ratio of 25.6. Canadian Pacific Railway has confirmed that its next quarterly earnings report will be published on Tuesday, October 20th, 2020.

Analyst Opinion on Canadian Pacific Railway (NYSE:CP)

23 Wall Street analysts have issued ratings and price targets for Canadian Pacific Railway in the last 12 months. Their average twelve-month price target is $343.10, predicting that the stock has a possible upside of 6.43%. The high price target for CP is $450.00 and the low price target for CP is $257.00. There are currently 1 sell rating, 5 hold ratings and 17 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Canadian Pacific Railway has received a consensus rating of Buy. The company’s average rating score is 2.70, and is based on 17 buy ratings, 5 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $343.10, Canadian Pacific Railway has a forecasted upside of 6.4% from its current price of $322.38. Canadian Pacific Railway has been the subject of 10 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Canadian Pacific Railway (NYSE:CP)

Canadian Pacific Railway has a dividend yield of 0.87%, which is in the bottom 25% of all stocks that pay dividends. Canadian Pacific Railway has only been increasing its dividend for 1 years. The dividend payout ratio of Canadian Pacific Railway is 22.92%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Canadian Pacific Railway will have a dividend payout ratio of 19.20% next year. This indicates that Canadian Pacific Railway will be able to sustain or increase its dividend.

Insiders buying/selling: Canadian Pacific Railway (NYSE:CP)

In the past three months, Canadian Pacific Railway insiders have not sold or bought any company stock. Only 0.01% of the stock of Canadian Pacific Railway is held by insiders. 71.68% of the stock of Canadian Pacific Railway is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Canadian Pacific Railway (NYSE:CP

Earnings for Canadian Pacific Railway are expected to grow by 12.05% in the coming year, from $13.20 to $14.79 per share. The P/E ratio of Canadian Pacific Railway is 25.59, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.66. The P/E ratio of Canadian Pacific Railway is 25.59, which means that it is trading at a more expensive P/E ratio than the Transportation sector average P/E ratio of about 20.02. Canadian Pacific Railway has a PEG Ratio of 2.91. PEG Ratios above 1 indicate that a company could be overvalued. Canadian Pacific Railway has a P/B Ratio of 8.29. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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